October 21, 2024 [Manufacturing Today]- Oil and Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation (BPCL) are in discussions to secure foreign partners for their planned greenfield petroleum refineries.

Both companies are targeting Saudi Arabia for collaboration. Previously, Saudi Aramco had expressed interest in joining the west coast refinery project in Maharashtra, which has yet to materialise.

Recently, Indian petroleum secretary Pankaj Jain, along with executives from ONGC and BPCL, met with Aramco CEO Amin Nasser and downstream president Mohammed Al Qahtani in Dhahran, Saudi Arabia.

Each company intends to establish a 12 million metric tonnes per annum (mmtpa) refinery, with investments estimated between Rs 70,000 crore and Rs 1 lakh crore.

BPCL has identified Andhra Pradesh as its preferred site, while ONGC is considering Gujarat or Prayagraj in Uttar Pradesh, marking ONGC’s first foray into refinery operations.

The Indian government is encouraging state-run energy firms to set up refineries across three key locations. Given the significant investment required, partnering with international firms is essential.

A similar joint venture structure as the delayed Ratnagiri Refinery & Petrochemicals (RRPCL) project may be adopted for the new initiatives. Meanwhile, Saudi Aramco continues to explore investments in India’s refining sector.